By agreeing to invest $500 million in a two-year-old deal, Priceline Group expands partnership with Ctrip, China’s biggest online travel company.
Owner of renowned websites, such as Booking.com, Agoda.com and Priceline.com, Priceline Group has expanded partnership with Ctrip, the biggest online travel company in China. With an investment of $500 million, the group has also obtained the rights to to buy Ctrip shares over the next year, increasing its holding to about 10 percent.
Keeping in mind that one in every 10 tourists in the world is Chinese and that they are the biggest travel spenders, the market is being heavily pursued at the moment. The expansion of the deal between Priceline and Ctrip aims to facilitate the exchange of experiences between China and the world.
Currently, Priceline’s global portfolio comprises over 500,000 accommodations outside Greater China, while Ctrip boasts of 100,000 accommodations in China itself. The agreement works towards cross-promoting hotel inventories between the companies.
Priceline’s six primary brands also include Kayak, OpenTable and Rentalcars.com (also known as TravelJigsaw), apart from several ancillary brands. The group has services in over 200 countries and territories in Europe, North America, South America, the Asia-Pacific region, the Middle East and Africa.
Ctrip, conceived in 1999, has 17 branch offices in Beijing, Guangzhou, Shenzhen and other major cities throughout China. In 2010, the company invested in Taiwan ezTravel and Hong Kong Wing On Travel, expanding its service scope to include Taiwan, Hong Kong and Macau, in addition to over 60,000 destinations and attractions throughout Mainland China. In 2014, Ctrip invested in ToursForFun, expanding its reach to North America.
Photo Credits: Skift